Easy Saver account with TSB Bank

alevar

Hi guys,
When I first moved to the UK I opened a basic current account with Lloyds (now TSB Bank). In addition, they opened for me an Easy Saver account, free of charge.

I never used it (I get my salary on my current account, and from it I pay everything I need to pay for), but I was just wondering...
What's the point of the Easy Saver account?

Like I can put money in there to "save", but in an emergency could I just transfer them to my other account? Or once you put the money in the saving account they have to be there for a fixed amount of time?

I mean, from my ignorance in the field, if I want to save some money I'll just leave them in the current account and not spend them, I don't see the reason why I should transfer them to a different account...

opinions4u

You earn interest on the Easy Saver. Albeit not much.

You don't earn interest in a basic current account.

Like I can put money in there to "save", but in an emergency could I just transfer them to my other account? Or once you put the money in the saving account they have to be there for a fixed amount of time?

It's an instant access account. You can get hold of your money on demand. Online banking makes this almost immediate.

Archi_Bald

In a typical current account, you don't get any interest. In a savings account you do, and there are now also some current accounts that pay interest.

If you don't get interest, your money loses in value, due to inflation. For example, if inflation is 2.5% and you had £1,000 in your account all year, it will only be worth £975 at the end of the year.

Note that not all savings accounts are worth much, and that includes the TSB easy saver which has a terrible 0.2% AER.

You could probably benefit from reading the savings article on the main site: http://www.moneysavingexpert.com/savings/

grumbler

alevar wrote: »

When I first moved to the UK I opened a basic current account with Lloyds (now TSB Bank). In addition, they opened for me an Easy Saver account, free of charge.

Very generous of them.

I never used it (I get my salary on my current account, and from it I pay everything I need to pay for), but I was just wondering...
What's the point of the Easy Saver account?

You are right - no point nowadays. Normally saving accounts are supposed to pay higher interest, but 0.2% is laughable.
Add 'Enhance' to your current account and if you meet some requirements you can earn 1.5%-3% on your current account balance.

I don't see the reason why I should transfer them to a different account...

You are right. ATM current accounts often pay much more than saving accounts:

• Top Savings Accounts

Archi_Bald

grumbler wrote: »

Add 'Enhance' to your current account and if you meet some requirements you can earn 1.5%-3% on your current account balance.

You need to have a classic current account if you want to add Enhance. It can't be added to a basic current account.

stclair

I use my easy saver for save the change, I don't pay into it directly.

http://www.tsb.co.uk/savings/save_the_change.asp

oldagetraveller

"TSB easy saver which has a terrible 0.2% AER."
Not much of an increase on that derisory 0.2%, but possibly if you ask them nicely they'll up it to 0.75% for a year!
I just keep a small "float" in mine. However, last week I was paying in a cheque over the counter and mentioned their rubbish interest rate on the Easy Saver.
Five minutes later I was sat in an office with the branch manager and he upped it to 0.75%.
No hard sell for anything else either, I was quite surprised!

System

Isn't the main benefit of Easy Savers (for Lloyds or TSB basic account holders) access to all ATM machines?